Updated on January 26th, 2026 by Bob Ciura
Each year, we individually review each of the Dividend Aristocrats, a group of 69 stocks in the S&P 500 Index that has raised their dividends for at least 25 consecutive years.
To make it on the list of Dividend Aristocrats, a company must possess a profitable business model with a valuable brand, global competitive advantages, and the ability to withstand recessions.
This is why Dividend Aristocrats can continue raising dividends in difficult years.
With this in mind, we have created a list of all 69 Dividend Aristocrats.
You can download your free copy of the Dividend Aristocrats list, along with important financial metrics such as price-to-earnings ratios and dividend yields, by clicking on the link below:
Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.
FactSet Research Systems (FDS) was among the new additions to the Dividend Aristocrats list last year.
This article will examine FactSet’s business model, growth prospects, and whether we are currently rating the stock as a buy, sell, or hold.
Business Overview
FactSet Research Systems, a financial data and analytics firm founded in 1978, provides integrated financial information and analytical tools to the investment community in the Americas, Europe, the Middle East, Africa, and Asia-Pacific.
The company provides insight and information through research, analytics, trading workflow solutions, content and technology solutions, and wealth management.
On December 18th, 2025, FactSet Research Systems announced Q1 2026 results, reporting non-GAAP EPS of $4.51 for the period, beating market consensus by $0.15, and revenue that grew 6.8% to $607.6 million.
FactSet reported a solid start to fiscal 2026, with solid results that were driven by continued demand from institutional buy-side and dealmakers clients.
Organic revenues increased 6.0%, while organic Annual Subscription Value reached $2.39 billion as of November 30th, 2025, representing 5.9% growth from the prior year.
Profitability metrics softened modestly as FactSet continued to invest in technology, content, and talent. GAAP operating margin declined to 31.6%, down roughly 200 basis points year over year, while adjusted operating margin decreased 137 basis points to 36.2%.
Despite margin pressure, cash generation remained strong, with operating cash flow increasing more than 40% and free cash flow up nearly 50% from the prior year.
Reflecting confidence in its financial position and long-term outlook, FactSet’s Board of Directors approved an expansion of the company’s share repurchase authorization from $400 million to $1 billion.
Growth Prospects
FactSet has grown its earnings-per-share with a compound growth rate of 7.2% over the last 10 years. The company’s investments and improved product offerings could lead to significant margin expansion in the following years.
We estimate EPS of $17.61 by 2026, matching the midpoint of the analysts’ estimates, and we reaffirm our 8.5% annual earnings growth forecast for the next five years, leading to an estimated earnings-per-share of $26.47 by 2030.
In addition, the increased earnings arising from expanding margins could be a primary dividend growth driver in the following years.
We also believe that the company’s continued investments in its digital platforms will continue to drive user-base growth in the coming years.
Competitive Advantages & Recession Performance
FactSet faces competition from Axioma, MSCI, Aladdin, S&P Capital IQ, Refinitiv, and Bloomberg.
The company’s proprietary data offerings differentiate the company in the marketplace, but alternative solutions by the other providers will dilute this competitive advantage over time.
The high switching costs tied to changing providers provide the company with some protection and visibility over its cash flow because of its subscription-based offerings.
FactSet’s earnings-per-share during the Great Recession are below:
- 2008 earnings-per-share of $2.50
- 2009 earnings-per-share of $2.97 (19% growth)
- 2010 earnings-per-share of $3.13 (5% growth)
During the past five years, the company’s dividend payout ratio has averaged around 64%. The company has a projected 2024 payout ratio of 63%, which indicates a sustainable dividend.
Given the expected earnings growth, there is still room for the dividend to continue to grow at the same pace and extend the track record of consecutive dividend increases which is an important factor for dividend growth investors.
Valuation & Expected Returns
Based on expected 2025 earnings-per-share of $17.61, FDS shares are currently trading for a P/E ratio of 16.2.
The stock’s 10-year average P/E ratio is ~29.0, and the five-year average is 31.9. We are using a P/E target of 28.0 as a fair value target for 2031, making shares very undervalued today.
An expanding valuation multiple could lift annual returns by 11.4%.
While the dividend yield remains relatively low at 1.5%, the modest payout ratio and above-average expected growth rate should allow for a long dividend growth runway in the years ahead.
Next, shares are currently yielding 1.5%. We also estimate 8.5% annual EPS growth. With annual returns estimated to reach 21.9% per year, we rate the stock a buy.
Final Thoughts
FactSet offers a safe, consistent, and steady long-term dividend growth record.
We forecast nearly 22% annualized total returns for the medium-term, derived from the forecasted earnings-per-share growth of 8.5%, the 1.5% dividend yield, and a large valuation tailwind.
Therefore, we maintain our buy rating for the stock.
Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:
- The Dividend Champions: Dividend stocks with 25+ years of dividend increases, including those that may not qualify as Dividend Aristocrats.
- The Dividend Kings: considered to be the ultimate dividend growth stocks, the Dividend Kings list is comprised of stocks with 50+ years of consecutive dividend increases
If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:
- The Complete List of Monthly Dividend Stocks: stocks that pay dividends each month, for 12 payments over the year.
- The Blue Chip Stocks List: this database contains stocks that qualify as either Dividend Achievers, Dividend Aristocrats, or Dividend Kings.